The Chairman, Caverton Offshore Support Group Plc, Mr. Aderemi Makanjuola, has said the company will commence the construction of an aircraft maintenance, repair and overhaul centre as well as an aviation training centre at Murtala Muhammed International Airport, Lagos.
He announced the plans in Lagos on Thursday at the company’s Annual General Meeting where shareholders approved the payment of N418m dividend, representing 12.5 Kobo for every 50 kobo ordinary share held.
Makanjuola, who told the shareholders that the company started 2014 with a corporate rebranding exercise, said,
“We have now obtained relevant regulatory approvals to commence the construction of our maintenance, repair and overhaul centre as well as an aviation training centre on a 40,000 square meters facility at the Murtala Muhammed International Airport, Lagos, both of which will house OEMs (Original Equipment Manufacturers).”
According to him, construction will commence in the second quarter of 2014 as part of the company’s medium-term strategy to diversify its revenue stream.
At the AGM, the Caverton chairman told the shareholders that the company was able to improve on its 2012 performance despite several challenges as a result of the support of its growing customer base and stakeholders.
In 2013, the company grew by 15.7 per cent to N18.663bn from the N16.132bn it declared the previous, while its profit after tax rose to N1.875bn from the N1.360bn it posted in 2012. Similarly, the shareholders’ funds rose by 15.9 per cent from N9.823bn to N11.380bn.
Makanjuola explained the increase in turnover and profit was due to the stability recorded and incremental business from both existing and new contracts signed in the financial year under review.
He said N418m dividend proposed by the board of directors was in line with the company’s “commitment to stable dividend policy”.
Although Makanjuola said 2013 was characterised by mounting economic challenges in the oil and gas industry, he said it was a year of consolidation for Caverton.
He listed the company’s activities in the year to include the commencement of operations of the DHC6-400 aircraft for Shell.
He added, “Our aircraft availability remains high at an average of 95 per cent on all contracts. In Douala, we replaced in April 2013 the leased aircraft with our twin otter and stabilised the operations through a number of initiatives.
“We also focused attention on quality and safety standards. Our efforts were indeed rewarded with the subsequent issuance of an unrestricted AOC for Caverton’s operations.”